By Kwanwoo Jun
LG Electronics Inc. said on Wednesday its third-quarter net profit fell 31% on year due to tough business conditions.
The consumer-electronics maker /zigman2/quotes/209966407/delayed KR:066570 +4.77% said it expects intense price competition from its rivals to be a drag, as the shopping season for some of its flagship products approaches.
Net profit for the September quarter was 345.70 billion Korean won ($296 million), compared with KRW497.10 billion in the same period a year earlier, hurt by U.S.-China trade tensions, Japan’s curbs on exports to South Korea and uncertainties over Britain’s delayed exit from the E.U.
However, it beat a FactSet consensus forecast for a net profit of KRW304.14 billion in the third quarter.
Revenue during the quarter rose 1.8% on year to KRW15.701 trillion ($13.45 billion), missing the FactSet consensus of KRW15.761 trillion. Operating profit increased 4.4% to KRW781.40 billion.
Strong growth in the TV-led home entertainment segment for the third quarter offset weakness in smartphone and other business units, the company said.
The company said it expects both revenue and operating profit may improve on year in the fourth quarter.
LG Electronics shares fell 0.7% to KRW68,500, slightly steeper than the broader market’s 0.6% fall for the day.